Down Home Motel

Tourism is New Hampshire’s second-largest industry, generating more than $5 billion of economic activity per year in the state. In 2014, it the tourism industry supported 68,000 jobs in New Hampshire. The number of visitors to the state has been growing steadily, tied to the growth in promotion by the NH Division of Travel and Tourism Development.

The Down Home Motel is currently operating with outdated systems and processes. I plan to update the motel to have a booking engine, online presence, and maximize the online presence through a detailed marketing strategy. The property will be listed through 3 major online booking engines as well as have a social media and website presence to help drive exposure for new clients. Within the first 12 months of the operation, the focus will be on accounting, marketing, and daily operations of the property. The "owners" house with two-bedrooms and the one-bedroom efficiency apartment is to be utilized as a yearly rental for a steady income. The laundry will be processed through a third party, this will be a fixed rate per room occupied and keep us in line with COVID-19 changes by offering sanitized untouched linen that is laundered in a sanitized environment. Within a five year target, I wish to update bathrooms and outdoor areas. The Bathrooms will have the small shower stalls updated to tiled walk-in showers with space to move in the shower. The outdoor areas will have fire pits and seating for guests year-round for each unit. 

Planning for this project will be completed before the transfer of the business. Online booking engines have already been lined up and agreements ready to sign and launch for opening day. The main house will be occupied day of transfer with a five year signed lease to include a 10% rent increase starting year two of the lease. Marketing will be managed through my currently existing company to drive exposure.

I have 19 years of experience within the Hospitality, Tourism, and Marketing field. My experience has been in the operations of resorts and inns that have been independent and corporately owned. In this recent time of COVID-19, I have worked within CDC guidelines to create processes and procedures to keep both guests and employees safe. I have extensive knowledge of revenue, hospitality marketing, and created standards to ensure that goals are attainable. I have held the role of Rooms Division Manager, this was overseeing housekeeping and front desk for 199 guest rooms and suites. This role taught me how to be hands-on and build budgets for maximum profit. I have been in group sales and learned how to target potential clients based on their needs and our amenities. 

The motel management and employee structure will include one full-time employee and contracted outsourced labor for maintenance, electrical, plumbing, and construction needs if they arise. The full-time employee will be titled Operations Manager and will work based on business needs. This person comes to me with extensive housekeeping and general maintenance background and will focus on the day to day operation. The Operations Manager will be responsible for the cleanliness of guest rooms as well as light maintenance of guest rooms and public areas both indoor and outdoor. The guest rooms will have digital locks that will are coded for guest arrival and departure. Guests can check-in based on the last 4 of their phone numbers. This eliminates a need for full-time front desk agents. The part-time employee will be me, overseeing reservations and guest reputation and working with the Operations Manager to coordinate any non-manageable needs for the business.

The sale of this business includes all furniture, fixtures, and equipment. There is a laundry room with two washers and two dryers as well as three par on linens. There is a working truck and plow for the winter season, riding and push mower for the summer season as well as a stocked barn with tools and equipment that will remain. All the guest rooms include newer mattresses, box spring, and furniture adequate to a traditional motel and on the fairly newer side.

The motel, with convenient parking space provided. will serve commercial and business travelers and persons as well as vacationers and tourists. The motel, located on an ATV and Snowmobile trail will provide an ideal location for trail access and ample storage for trailers and gear associated with this hobby. We will provide a clean, well-stocked, and maintained guest room for overnight accommodations. 

In the current location, we are in short proximity to MOMS, this is a place where snowmobile and ATV rentals are easily done. In a partnership with MOMS, we will engage in a Ride & Stay offer, this will be a package for potential guests that are looking for the experience of ATV or Snowmobiles and combine a one-stop-shop for the rental of the guest room and ATV or Snowmobiles. Part of a ten-year goal is to renovate the barn and turn the upstairs into a game room and the lower part an area for small weddings, birthdays, and or meeting space.

My target market for this business is broken down into three main sections.

For Singles – Most individuals that choose motels over other accommodations are a diverse group of travelers that consists of backpackers, artists, businessmen, students, and more. They usually prioritize affordability and location over extra service and aesthetics.

For Couples – This market doesn’t prioritize accessibility or affordability. These customers would prefer a little privacy and with some extra services to go with their reservation. However, they would usually ask for nearby dining places or tourist spots where they can enjoy each other’s company. This location is the perfect place with options to dine and explore. Adding romance packages and add-ons to their reservation will help drive couple sales.

Groups – One of the most profitable markets for motels are group reservations, provided you have the right number of rooms or beds to accommodate their requirements. Affordability is a must for these clients, along with possible freebies and discounts. Targeting small groups, weddings, and elopements, as well as family reunions, will be an obtainable market to tap into.

There is an established base of clientele that are repeat guests with this business. Though change is difficult, we expect the guests that come back year after year will continue. The repeat guest list will be considered "Founding Guests" and receive substantial discounts that will keep the word of mouth positive and their travel to the area going for more years to come. 

Competitors are certainly not the only factor that should influence your hotel’s room pricing. Often it’s better to look at competitors after you think you’ve priced your rooms to advantage and then adjust as needed.

With the increased availability of real-time marketing data, it’s entirely possible to design a multi-tiered dynamic pricing strategy that can change at a moment’s notice. With accurate prior knowledge, I can easily.

Technology can also play a major role in accurately and effectively establishing pricing strategies at my hotel. Pricing and business intelligence tools make it much easier for me to monitor the market, track competitors, collect data, forecast, and make quick adjustments.

With all that in mind, the priority of pricing should be forecasting. This way I can predict demand so you can get travelers to book early. Then I can raise rates later as availability drops and demand increases. (This is an ideal pricing structure known as the “ascending model” whereby pricing increases closer to an arrival day.) 

The Company's major target markets are as follows: 

Canadian Clientele:

Canada dominates in terms of visits to New Hampshire. In 2019 an estimated 335,000 Canadians traveled to New Hampshire – accounting for 81% of the visitor arrivals. This number has increased over time. Canadian visitors spent an estimated $86 million, accounting for nearly two fifths (38%) of the total. 

Overseas Travelers:

New Hampshire was visited by 79,000 overseas travelers in 2016. Overseas visitors accounted for 19% of visitor arrivals. This would be targeted through FIT (Foreign Individual Traveler) Agreements and excursion packages. Overseas visitors spent $140 million, accounting for over three fifths (62%) of the total. 

Corporate Lodging:

With the contracted agreement, CLC will offer base rooms for corporate truck drivers and businesses associated with travel for work. 

Third-Party OTA:

Booking.com, Expedia and other OTA have marketing built into their packages, With this direction, we open the property up to more clients and provide more visibility to the motel.

The estimated number of potential clients within the Company's geographic scope is 511,300.

There are three motels/hotels in the surrounding area. Each property offers a unique and distinctly different experience. While the properties that are competitors are a distance away from this motel, they are still competitors. With an already established relationship with The Lancaster Motel and The Coos Motor Inn, referrals during busy times have shown to be a steady trend between motels offering the opportunity to sell out as they do or to gain a client that is looking for something different.

Strengths 

• Strategy: established differentiation strategy.

• Structure: flat, decentralized structure.

• Skills: a diverse range of service skills within management and staff.

• Style: A strong, participative culture.

• Staff: specialized and experienced staff that are motivated and highly skilled. A well-trained team who are proud of their hotel and respect and promote the brand values.

• Shared Values: clear and well communicated.

• Brand Strength: brand values well represented engendering brand loyalty amongst existing and new guests.

• Reputation: a strong reputation within the local market and corporate and travel trade markets for reliability, exemplary service, and quality. 

Weaknesses 

• Strategy: differentiation strategy needs to be more clearly communicated externally, within local and national markets.

• Systems: formal systems result from the detail-oriented work and environment. 

Interdepartmental communications MUST be improved as they are non-existent.

• Staff: seasonal turnover requires ongoing training and orientation of new staff.

• Facilities: certain rooms require renovation and upgrading (based on personal preference) 

Opportunities 

• Market: returning growth after a period of COVID-19 slump. The need to introduce digital presence and online booking.

• Competitors: no direct competition exists at present.

• Suppliers: strong, long-term relationships established with suppliers. 

• Guest Dependency: repeat corporate business based on personal service and quality, in a small but luxurious environment. 

Threats 

• Market Entry: potential for a competitive, global brand such as Motel 6 or Super 8 to enter the market with a similar product.

• Substitutes: fully furnished and serviced business apartments offering lower daily rates on Air BNB. 

• Economy: recovery from a slight recession due to COVID-19 may take time. 

Services 

First-rate service is intended to be the focus of the Company and a cornerstone of the brand's success. All clients will receive conscientious, one-on-one, timely service in all capacities, be they transactions, conflicts, or complaints. This is expected to create a loyal brand following and return business.

The typical workday will start with a daily report to the Operations Manager, this report will consist of what rooms need to be cleaned and what rooms will be arrivals. The booking engine (LittleHotelier) will be reviewed for payment processing and auditing of sales. Guest reputation will be reviewed, this will monitor all guest feedback, emails, comments, or messages to us directly. Inventory review will be checked and pricing adjusted accordingly.

Operations Manager Review

Guest Reputation Review

Bookkeeping Review